Former Xinja CEO Eric Wilson disqualified for eight years

After a years-long investigation, APRA found that Swanger had failed to act with “honesty and integrity” during the investigation, had “altered documents” and misrepresented to regulators the capital the company had raised.

The regulator found that Wilson had similarly “misclassified” money raised by three investors separately from the Dubai investors and had failed to engage APRA “in an open, constructive and cooperative manner” about the nature of the capital raised.

Xinja became the first Australian bank to return its banking license in 2021 after shocking customers and shareholders by announcing plans to close all bank accounts and return customer savings because it could not raise funds quickly enough to remain viable.

The company initially tried to “pivot” to building a trading app in the US, but those plans eventually collapsed, leaving investors out of pocket. Prior to Xinja, Wilson built on previous experience working at National Australia Bank, and Swanger had experience as chief investment officer at Macquarie Bank. Both were contacted.

Early Xinja investor Thomas Murphy said Xinja’s executives were more interested in marketing and seeking glowing media attention than developing a sustainable business model, and the collapse raised broader questions about the regulation and transparency of unlisted banking companies. He said the outcome was “extremely sad” for thousands of investors who were left empty-handed.

“This was going to be a showcase example of how young people were going to enter the market through crowdfunding,” he said. “For some, this would be their first and their last. They will never go back.”

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